| COINOTAG recommends • Exchange signup |
| 💹 Trade with pro tools |
| Fast execution, robust charts, clean risk controls. |
| 👉 Open account → |
| COINOTAG recommends • Exchange signup |
| 🚀 Smooth orders, clear control |
| Advanced order types and market depth in one view. |
| 👉 Create account → |
| COINOTAG recommends • Exchange signup |
| 📈 Clarity in volatile markets |
| Plan entries & exits, manage positions with discipline. |
| 👉 Sign up → |
| COINOTAG recommends • Exchange signup |
| ⚡ Speed, depth, reliability |
| Execute confidently when timing matters. |
| 👉 Open account → |
| COINOTAG recommends • Exchange signup |
| 🧭 A focused workflow for traders |
| Alerts, watchlists, and a repeatable process. |
| 👉 Get started → |
| COINOTAG recommends • Exchange signup |
| ✅ Data‑driven decisions |
| Focus on process—not noise. |
| 👉 Sign up → |
-
The Cboe BZX Exchange has proposed a significant amendment to its ARK 21Shares Bitcoin and Ethereum ETFs, aiming to enhance operational efficiency.
-
This new in-kind creation and redemption model promises to lower costs and reduce tax implications for investors, fostering better market alignment.
-
Industry analyst James Seyffart noted, “The in-kind model is way more streamlined with less steps,” emphasizing its importance for ETF efficiency.
Explore how Cboe’s proposed in-kind ETF model could redefine crypto investment by lowering costs and improving efficiency in the market.
Cboe’s Proposed Rule Change for Bitcoin, Ethereum ETFs
The Cboe BZX Exchange recently filed a proposed rule change with the US Securities and Exchange Commission (SEC) to implement an in-kind creation and redemption process for its ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH). This change aims to enhance efficiency by allowing Authorized Participants (AP) to exchange actual cryptocurrency rather than cash when creating or redeeming shares.
By adopting this model, the ETFs can maintain their price more closely aligned with the underlying assets, which is crucial in volatile markets. The in-kind mechanism will significantly reduce transaction costs and minimize taxable events, promoting a more favorable environment for investors.
The filing stated, “Cboe BZX Exchange, Inc. (“BZX” or the “Exchange”) is filing with the Securities and Exchange Commission (“Commission” or “SEC”) a proposed rule change to amend the ARK 21Shares Bitcoin ETF (the “Bitcoin Trust”) and the 21Shares Core Ethereum ETF (the “ETH Trust” and, collectively with the Bitcoin Trust, the “Trusts”)…” This regulatory move reflects a broader trend towards operational improvements in the ETF landscape.
| COINOTAG recommends • Professional traders group |
| 💎 Join a professional trading community |
| Work with senior traders, research‑backed setups, and risk‑first frameworks. |
| 👉 Join the group → |
| COINOTAG recommends • Professional traders group |
| 📊 Transparent performance, real process |
| Spot strategies with documented months of triple‑digit runs during strong trends; futures plans use defined R:R and sizing. |
| 👉 Get access → |
| COINOTAG recommends • Professional traders group |
| 🧭 Research → Plan → Execute |
| Daily levels, watchlists, and post‑trade reviews to build consistency. |
| 👉 Join now → |
| COINOTAG recommends • Professional traders group |
| 🛡️ Risk comes first |
| Sizing methods, invalidation rules, and R‑multiples baked into every plan. |
| 👉 Start today → |
| COINOTAG recommends • Professional traders group |
| 🧠 Learn the “why” behind each trade |
| Live breakdowns, playbooks, and framework‑first education. |
| 👉 Join the group → |
| COINOTAG recommends • Professional traders group |
| 🚀 Insider • APEX • INNER CIRCLE |
| Choose the depth you need—tools, coaching, and member rooms. |
| 👉 Explore tiers → |
Benefits of In-Kind Creations and Redemptions
The in-kind creation and redemption process allows for a more effective trading strategy for ETFs by eliminating the cash component in share transactions. For instance, when an AP wants to create new shares of a Bitcoin ETF, they’re able to simply deliver Bitcoin rather than cash, which considerably streamlines the operation. This improves liquidity and price efficiency while also enhancing the overall market’s activity.
As highlighted by Seyffart in a recent post, “The main point is that the in-kind model is way more streamlined,” which underlines the method’s efficiency and its alignment with how most ETFs typically operate. The transition to in-kind processes may also encourage more institutional participation in these ETF products.
| COINOTAG recommends • Exchange signup |
| 📈 Clear interface, precise orders |
| Sharp entries & exits with actionable alerts. |
| 👉 Create free account → |
| COINOTAG recommends • Exchange signup |
| 🧠 Smarter tools. Better decisions. |
| Depth analytics and risk features in one view. |
| 👉 Sign up → |
| COINOTAG recommends • Exchange signup |
| 🎯 Take control of entries & exits |
| Set alerts, define stops, execute consistently. |
| 👉 Open account → |
| COINOTAG recommends • Exchange signup |
| 🛠️ From idea to execution |
| Turn setups into plans with practical order types. |
| 👉 Join now → |
| COINOTAG recommends • Exchange signup |
| 📋 Trade your plan |
| Watchlists and routing that support focus. |
| 👉 Get started → |
| COINOTAG recommends • Exchange signup |
| 📊 Precision without the noise |
| Data‑first workflows for active traders. |
| 👉 Sign up → |
Market Position of ARK 21Shares Bitcoin and Ethereum ETFs
The momentum of the ARK 21Shares Bitcoin ETF (ARKB) continues to grow since its approval in January 2024. It boasts a cumulative net inflow of approximately $2.91 billion and maintained total net assets of about $5.10 billion, making it the fourth-largest Bitcoin ETF currently. Furthermore, ARKB holds 0.25% of the entire Bitcoin market share, demonstrating its robust presence in the sector.
Similarly, the Ethereum ETF (CETH) is positioning itself as a formidable option, ranked as the eighth-largest Ethereum ETF. It recorded a cumulative net inflow of $11.40 million and managed total net assets of $16.77 million as of January 27, showcasing a steady entry into the crypto investment landscape.
| COINOTAG recommends • Traders club |
| ⚡ Futures with discipline |
| Defined R:R, pre‑set invalidation, execution checklists. |
| 👉 Join the club → |
| COINOTAG recommends • Traders club |
| 🎯 Spot strategies that compound |
| Momentum & accumulation frameworks managed with clear risk. |
| 👉 Get access → |
| COINOTAG recommends • Traders club |
| 🏛️ APEX tier for serious traders |
| Deep dives, analyst Q&A, and accountability sprints. |
| 👉 Explore APEX → |
| COINOTAG recommends • Traders club |
| 📈 Real‑time market structure |
| Key levels, liquidity zones, and actionable context. |
| 👉 Join now → |
| COINOTAG recommends • Traders club |
| 🔔 Smart alerts, not noise |
| Context‑rich notifications tied to plans and risk—never hype. |
| 👉 Get access → |
| COINOTAG recommends • Traders club |
| 🤝 Peer review & coaching |
| Hands‑on feedback that sharpens execution and risk control. |
| 👉 Join the club → |
Conclusion
Cboe’s proposal for in-kind creations and redemptions in its Bitcoin and Ethereum ETFs represents a pivotal shift toward more effective and efficient trading mechanisms. The anticipated benefits of reduced costs and minimized tax implications could potentially reshape investor engagement in the crypto ETF space. As industry analysts expect these changes to bolster market efficiencies, the focus remains on continual adaptations that align with investor needs and market dynamics. Investors should watch these developments closely as they signal a new era of operational strategies in the cryptocurrency sector.
| COINOTAG recommends • Members‑only research |
| 📌 Curated setups, clearly explained |
| Entry, invalidation, targets, and R:R defined before execution. |
| 👉 Get access → |
| COINOTAG recommends • Members‑only research |
| 🧠 Data‑led decision making |
| Technical + flow + context synthesized into actionable plans. |
| 👉 Join now → |
| COINOTAG recommends • Members‑only research |
| 🧱 Consistency over hype |
| Repeatable rules, realistic expectations, and a calmer mindset. |
| 👉 Get access → |
| COINOTAG recommends • Members‑only research |
| 🕒 Patience is an edge |
| Wait for confirmation and manage risk with checklists. |
| 👉 Join now → |
| COINOTAG recommends • Members‑only research |
| 💼 Professional mentorship |
| Guidance from seasoned traders and structured feedback loops. |
| 👉 Get access → |
| COINOTAG recommends • Members‑only research |
| 🧮 Track • Review • Improve |
| Documented PnL tracking and post‑mortems to accelerate learning. |
| 👉 Join now → |